S&P downgrades Hawaiian Telecom

December 7, 2005

Standard & Poor's Wednesday lowered its corporate rating for Hawaiian Telcom to B from B plus.

The credit-rating agency also lowered its debt rating to CCC plus from B plus.

"The downgrades reflect pressure on credit protection measures because of the additional expense associated with the recently announced delay in transitioning back office operations from Verizon Communications to BearingPoint, the service provider chosen by Hawaiian Telcom to build and operate its back office systems," credit analyst Susan Madison said in a news release.

S&P added that "the downgrades also reflect the impact of a heightened competitive environment. While Hawaiian Telcom can absorb the increased expenses associated with the two-month extension of the transition services agreement with Verizon, the credit watch recognizes that an extension beyond April 1, 2006, would cost approximately $20 million per month, and could result in a further downgrade. Hawaiian Telcom is an independent local exchange provider providing integrated communications services to approximately 651,000 switched access lines through the State of Hawaii. Total debt outstanding at Sept. 30, 2005, was approximately $1.3 billion."

Copyright 2005 by United Press International

Related Stories

Recommended for you

Cells lacking nuclei struggle to move in 3-D environments

January 20, 2018

University of North Carolina Lineberger Comprehensive Cancer Center researchers have revealed new details of how the physical properties of the nucleus influence how cells can move around different environments - such as ...

Information engine operates with nearly perfect efficiency

January 19, 2018

Physicists have experimentally demonstrated an information engine—a device that converts information into work—with an efficiency that exceeds the conventional second law of thermodynamics. Instead, the engine's efficiency ...

New research challenges existing models of black holes

January 19, 2018

Chris Packham, associate professor of physics and astronomy at The University of Texas at San Antonio (UTSA), has collaborated on a new study that expands the scientific community's understanding of black holes in our galaxy ...

Team takes a deep look at memristors

January 19, 2018

In the race to build a computer that mimics the massive computational power of the human brain, researchers are increasingly turning to memristors, which can vary their electrical resistance based on the memory of past activity. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.